Standard Bank data says 52 percent of entry level private banking clients have less than one month of their salary in emergency savings.
The financial institution notes that 29 percent of its emerging private banking clients do not have emergency savings.You don’t have to be financial adviser to know that South Africans are struggling to put food on the table, fuel in their cars, or pay off their bonds. Quite frankly, the astronomical rise in the cost of living has made life untenable for many, and new data shared byThe financial institution this week shared information regarding its emerging high-profile customers.
Without the emergency savings, the financial institution says that many have had to resort to debt creating loans or other methods of accessing funds quickly, which erodes their ability to start building wealth over the long term. Unpacking the importance of emergency savings, Doret Jooste, head of Money Management and Advisory at Standard Bank, says that it, “helps you avoid taking unnecessary and usually expensive short-term debt when you need to cover an urgent expense.”
“Having three months’ worth of salary saved may sound like a large amount, but it can be built over time. For example, first aim to cover your fixed expenses for one month with your savings. Then gradually start building it up from there,” advised Bridgette Kruger, Standard Bank’s head of Private Banking in SA.
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